A new survey has revealed that the average house in Northern Ireland has risen to over £250,000.

The latest University of Ulster Quarterly Price Index, also showed the annual rate of house price growth slowed considerably in the third quarter of 2007 and the volume of sales has fallen sharply.

The index, in partnership with the Bank of Ireland and the Northern Ireland Housing Executive, saw priced growth slowed from 51% in the second quarter to 40% in the third.

Professor Stanley McGreal, one of the report’s authors, said: "There has been a clear change of sentiment reflected not only by the reduced rate of growth but a significantly lower sales of volume, down by a third compared to the same quarter in 2006.

"In essence, there are still high price levels but much lower growth rates and considerably reduced sales activity."

Bank of Ireland’s Head of Research in Northern Ireland, economist Alan Bridle, said that while the market temperature has obviously cooled, the analogy of the balloon going "hiss" rather than "pop" seemed most appropriate.

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"In my view, the most telling statistics are the sharp drop in transactions and the evidence that process are 'sticky' in most areas because they are not responding quickly to the signs of lower demand."

The annual average growth by property sector is consistent with the overall rate of increases. It ranges from almost 35% for detached houses (average price £369,609) to almost 45% for detached bungalows (average £334,702).

In the two main sectors of the market, terraced/townhouses rose by 40% to an average or £199,392 while semi-detached homes went up 41.3% to £243,223.

In Belfast the average price of a house was up 50% relative to the same period last year to £258,332 reflecting the strong market in the city.

The East Antrim market rose strongly by 58% to £222,759. In Antrim/Ballymena the rise was 29.7% to £222,193 while in Coleraine, Limavady and the North Coast prices went up 42.6% to £285,938.

In Derry/Strabane the annual rise was 26.4% to an average of £185,863 while in Mid-Ulster the increase was much higher at 61.8% to an average of £292,931. Enniskillen/Fermanagh/South Tyrone showed a small fall of 5.7% to £191,368 but this figure could have been affected unduly by the small level of sales in these areas.

In Craigavon/Armagh the average price of £241,410 represented an annual rise of 37.1% while in Mid and South Down prices rose by 26.1% to £261,654.

In North Down annual growth was 44.5% to £279,127. In Lisburn prices rose by just over 25% to £284,599.

(JM)